one additional meeting with the group with the china fro zone trade per diem program he give us an explanation of how it works and specifically the shanghai trade program that's going to be interesting. forbid china as a whole. with that, peter. what we are going to do it could be in 90 days with the port commission and put the plan together for the next 5 years and we want you to impasse -

embrace it we want to make it happen. they were out but you've got to be all in and putting the brainpower together so testified what is impressive in the transportation center in china we jumped on the transportation center their subway system it was in chinese and mandrin but it's amazing how people move in the city their ahead effort transportation i was impressed with their fast trains and stuff like that they've got the bullet train from shanghai to b.a. shrink and i'm hoping we get

that >> commissioner adams. >> i really have nothing to report no honors to report. >> i'm sure that will be recommended. >> i want to commend commissioner president katz for the lgbt port diversity group that's a huge effort and i need to be connected it's much needed. i want to commend commissioner adams for travel to china he has a lot of great contacts he helped peter and the staff to a looking for great opportunity nor the port of san francisco. i'm truly supportive of this maritime efforts to try to get more business in san francisco. >> commissioner adams for representing the port so well.

>> i just want to say thank you madam president for your work and also to ambassador adams great job and thanks to peter and gym for the great work. >> i just also wanted to thank peter and jim the results are tremendous and the opportunity for the port so thank you very much for doing that spending so much time away from everything else. >> any public comment seeing none. item on consent calendar requests the item 10 to extend in coastal impact fund from the u.s. finish and wildlife service

with the california agency for peering or pierce 31 >> so moved. >> second. >> all in favor, say i. i. >> any opposed. public comment? seeing none. all in favor, say i. >> i. opposed? content item >> item 11 a requests the approval of the preliminary statement relating inform the bond and 30 years it's relationship to the revenue bonds. >> good afternoon. commissioner president katz elaine support staff we're near the final leg of revenue bond issuance for 2014. before i start, i want to say a special thanks to the executive director to monique and john our

fiscal officer while i had to be away and they both jumped into my shoes and filled them well, i must say and john spent a lot of evenings and weekends so thank you, john. also here is the rest of the finance team who all collaborated on this and the bond team shawn from hawkins our disclosure council and bob and christen from t s m our financial advisors >> thank you and week. i mentioned the team just to make the port commission feel secure we have a complete team reviewing our financial

statement from our disclosure and bond council and co- bond council ship and harden the sdpoofz and our underwriters and steve serving as co- underwriter. so the commissioners are familiar with the plan for 2014 port revenue issuance in may of last year you saw and approved our financing plan that gave us access inform the plan and december of last year on the 12th you approved the issuance of bonds and several few minutes ago documents including the second vegetation of trust and

gave our executive director authority to enter into the contracts. on february 11th this year i was here to look at the financial statements for our 5 year financial projection that are included in the preliminary official statement. so today we're asking you to approve the preliminary statement and authorize the document to potential investors and to approve the certificate. the preliminary official statement is a document to really let investors know what could go wrong with the port of san francisco and explain our capital strategies and risk factors it's required by the security and exchange commission it must be accurate and complete so we'll make it up to the date

of publication. the continuing certificate is an agreement we make to provide key financial information annually. for the life of the bonds and you'll see in attachment two the form of the disclosure it includes the po s and which tables we'll be updating and event we must disclose it is similar to the revenue bond but the finishing will be familiar with our disclosure for those bonds. just to remind the commission of the proposed use of fund. there's phase two of the cruise ship terminal 189.5 million and

northern waterfront the powers is really for pier 31 and other improvements for leasing activities for 19.9 million so the projects are costs in about $707,000 and a reserve that will fund 1.7 so total anticipated use it $24 million. we have a large authorization pending sale to deal with market uncertainty. as the commission reviews the post offices in in addition to see a real estate maritime operation and projection our regulatory environment and capital plan and development strategy you'll also see emerging the port credit we have

strong coverage and very strong fiscal management policies you've embodied for you including your 15 percent reserve we've made progress in meeting our capital backlog and respects investment you'll see the strength of the economy and how it helps the position of our assets from the then to our revenue it's a picture of growth and diversity. and we as the commissioner adams just commented on the diversity of our portfolio and it enhances our water service our water dependence the ballpark and explore tomorrow we can't imagine. being anywhere but on our port.

this is a strength that highlighted in the preliminary official statement we're looking at 6.74 times in 2014 and in 2015 to 7.5 times coverage this is internal goal is never to fall below two times coverage this is on the revenue bonds the probation officers looked at this and the low is 2.77 times all of this to say we're not over leveraged nor do we plan to be over leveraged. to our revenues i'm sure you're aware of in 2013 our operating revenue was 20 pillow plus and the chart on the right is the

growth for the past 18 years the port revenues have increased due to management intrefrj and the inclusion of our assets and the green is other sources but it's remained relatively constant that's to say we're doing a job in remaining a share of both types of revenue. also throw in the preliminary official statement you'll see reflected our initiate that's can enhanced our credit from the capital plan approval do again, the capital policy the close attention to selecting revenue

generating projects in our bond program to securing external sources from the city ace the parks program and grants other appropriations and many not able projects. we have 19 risk factors that eave disclosed on page 17 to we took a great deal of time to make sure we're disclosing any risks we can think of our executive director had every member in the senior staff review the risks to document every possible risks i'm going to highlight 3 they're the ones i think about. so one is the condition of the ports facilities that that is

one you're very, very aware of your assets are over one hundred and a 50 yields we'll have high seismic risks it means we need to also be focused on repair of those facilities and we've lost revenue from our history it's a serious risk to the port we i may lose revenue producing risks. other restraints on revenues this is really leading the potential investor to understand we may not also have the ability to raise the revenues it's out of our control it's the regulatory framework we operate under sunshine which sometimes restricts our ability to do that. while we're still subject to all

the economic and competitive factors that other commercial and real estate businesses operate under they're not under the regulatory environment and we are and, of course, wealthier we obviously have two actively faults and we've experienced significant earthquakes. and in april of 2008 a working group produced a report and the probability of a earthquake is how attests probably we'll have an earthquake in the next few years. as for next steps we'll be meeting with the regulatory agency to go over the rating a credit presentation and the allocations will be providing a rating for this bond issuance.

we will be going to the board of supervisors for approval and the board of supervisors will also need to approve the plaintiff o f and the prices we'll show those and have a negotiated sale and they'll report back to the commission. i'm here to answer any questions you have >> so moved. >> is there a second. >> second. >> public comment? seeing none. commissioners. do you want to >> no, i'm okay with it she's dot the i's and cross the t's it looks good to me. >> commissioner brandon. >> you did a good job with your presentation and the staff report was thorough i think i

understand everything i noticed one that added to the financial schedule when we talked about this in december the capital planning approval. >> who is the capital planning committee. >> it is a group of okay. so it was established sometime ago through ordinance and it's a group of chapter 6 and other departments lead by the administrator naomi kohl and voices the board on items related to capital so it's voter approved so that the city ought to do planning capital the go bonds schedule and the departments need to come together a ask questions complete cost of ownership, etc. before the items go to the board

of supervisors. ii sit on 9 capital planning committee >> thank you. commissioner adams >> clearly due diligence has been done i want to say i'm hoping we can get some federal funds you've duplicate a great job but clearly we need federal funds out of the harbor funds or something like that. so thank you >> i'm sorry i just wanted it add i want to commend you on the great diversity of the team. it's a great team >> and i also want to thank you and all your team for the

incredible work the members of the public can't see the unbelievable pile of information. so i had one question it's not directly related per say but we're certainly not over legend or leveraged with the - in the fire chief how are we positions there the future bonds? >> in terms of bonding capacity our remaining bonding capacity after this issuance is $40 million maybe a little bit higher but we're careful about new revenue bond because it will compete with our capital budget we find is project that will

generate revenue to pay us back so what have capacity you know with the budget does that make sense. >> yes. >> well, thank you. can i have a motion all in favor, say i. opposed? so the two items carry. resolution number 14 dash 18 carries. item 12 a request the approval with the california terminals incorporated the developing vessel for pier 96 for a one year term with the options and one extension for the revenue for $233,000 >> peter daily maritime

director since 1998 we've been under character with the vessels through the maritime. you'll recognize them in you go to the at&t park and those are the two ships we're top of today. mar add maintains a fleeft of vessels that are for the need of the military for emergency equipment around the world. this national defense reserve fleet their ships are births around the world and they keep the ships in a readiness position with a 96 hour

evacuation. the terminals is part of the largest contractor for the shipped and dating back to 1998 the california has had a relationship with this company. we currently have 3 ships under contract at pier 50 and 96 that agreement with the federal government exteriors this are. having the ships in san francisco is important for a number of reason a their ships and kind of cool looking and b they're a major tenant of our public utilities commission and they're about $175 million a year and those ships require ongoing ship maintenance and i

see the gentleman in the back. which generates jobs and then as important mary ships have the capacity to support of the efforts in the anticipation of a national disaster. those ships having them on the waterfront if there's a energy they can provide water and power and tear housing and the mayor was using those ships in the new orleans after katrina. and in new york after sandy the ships were vital in recovery and it was after the earthquake in the 80s a few years back. mary add puts the contracts out to bid and they put the 3 ships out forbid and the 3 ships the

two at pier 50 the kate hudson and the third is the chesapeake at the pier 96 the coast would i do slittion and had power costs that are higher but unfortunately, we can't over better costs. it was a more competitive isolation and under the lease we're responsible for the capital from the wire to the electrical to the sewer and dredging. at the end we worked there the california terminals we worked that reduced the revenues,

however, in subsequent years it will provide more revenues. the port based on the approval here today and the contract going going forward the terms of the agreement are in the staff report it's one it's 10 one year periods that's reluctant yearly. i'm here and the contractor is here for questions you may have >> so moved. >> any public comment? seeing none. commissioners >> yeah. i have to speak to this i'm supportive of this. this is something that's good for us and also the maritime administration this is one of the duties i know chip and i'll be there next week in his office

i'm supportive this is something we should support and it's good to have him in our backyard it's producing revenue so i ask the commissioners to support this >> thank you peter. why does the rent decrease in the first year >> we calculated a rent package that is is for year one and two and begged them to take the 5 year term the rates will go up in the subsequent years we were faced with a 40 periods of time differential compared to the ports in the northwest that are connoting we wanted to make sure we didn't lose the ships and

knew we were going to be undercut up north. >> thank you. >> thank you. >> i had one question in terms of the the ability to either move any of those ships to a different location or can you talk about that. >> essentially the contractors were responsible for the dlenl and n this has happened in the past we've had the shipped and a no idea need to move them we will need to supply the contractor and merry add with a birth at the different location as long as we need to have the home for the 10 year period. >> thank you. i think we're lucky it to have those ships based here and

hopefully not have to use them >> commissioners? all in favor, say i. >> i. >> opposed seeing none, it carries. the pilot transportation improvement projects identified as part of the waterfront assessment for the san francisco aid. >> good afternoon commissioner president katz and members of the commission. i'm detaining just here to introduce you to this briefing from the san francisco municipal assessment. last year there was a introductory briefing of a comprehensive assessment led by sfmta with the whole city family

involved in doing intrarthd transportation planning between handling all the existing uses and the projected growth and using that to incorporate into perspire tiger's and identifying strategic transportation improvements for the waterfront area. so i really want to give credit to peter and albert who's led on the overall waterfront transportation area. today aaron miller will be talking about that as it gives me revises to pilot transportation prongs mta will be carrying out in the south beach area. it grows from a number of transportation solutions strategies that have been identified and we wanted to test

them. so she is focusing on one important element of that testing program. there's another transportation poise of the testing program that aaron will speak to that's been conducted by the transportation authority as well. thanks very much if you have any questions here aaron miller is. >> good afternoon, commissioners. commissioner president katz i'm aaron miller i'm the transportation project person. i'm here as diane said with my colleague porter albert and diane and all the colleagues from the port i see here today. as diane mentioned i'l